Ah ha! Ok, the Makefile itself is directing make to that non-existent directory.
Makefile attached, and here is the relevant section:

# File: arcmsr/Makefile
# Makefile for the Areca ARC-11XX/12XX/16XX SAS/SATA RAID Controller
# Copyright (C) 2009 - 2012 Areca Technology Corporation
#
# This program is free software; you can redistribute it and/or
# modify it under the terms of the GNU General Public License
# as published by the Free Software Foundation, version 2
# of the License.
#
# This program is distributed in the hope that it will be useful,
# but WITHOUT ANY WARRANTY; without even the implied warranty of
# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
# GNU General Public License for more details.
#
#
# Main targets:
#    all (the default) : make all
#    clean             : clean files
#    install           : make all + install
#    uninstall         : uninstall
#
# Notes :
#    - install and uninstall must be made as root

ifeq ($(KVER),)
  ifeq ($(KDIR),)
    KVER = $(shell uname -r)
    KDIR := /lib/modules/$(KVER)/build
  endif
else
  KDIR := /lib/modules/$(KVER)/build
endif

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